Add Sony-EMP document

MECHANICS OF THE DEAL: According to the deal proposal, Sony/ATV will administer EMP’s business, which involves processing royalties and making licensing deals, Sisario points out. In exchange for eliminating about $120 million in overhead expenses, Sony/ATV would get 15% of net publisher’s share—its revenue minus royalty payments to songwriters—as an administration fee. Based on EMP’s accounting from last year, that would net Sony/ATV $50 million, saving EMI’s operations $70 million. A large portion of those savings appear to be in layoffs. According to the document, 152 people would be laid off in the first year, and 174 would be “used on a temporary, transitional basis.” The elimination of those 326 positions represents about 63% of EMP’s current work force of 515. Those numbers may have changed since the document was prepared in January, but as a pitch to investors it makes an aggressive case for savings and profitability. Few in the music industry think that could be accomplished without many layoffs. (4/18a)